Why Proof Of Insurance Is Important For IT Staffing Agencies
Dan Levenson September 01, 2016
When you work in the world of IT staffing, all sorts of things can happen. You have to be a smart business owner and protect yourself as much as possible. By having proof of insurance, you can obtain more business and protect your assets and financials in the process.
This is often as simple as having the necessary insurance and being ready to show proof of it upon request. You should be able to identify the insurance company and your policies, subcontractor agreements, and more.
This can offer the level of protection needed for your business, and it speak volumes to potential business partners.
What Kind Of Insurance Do IT Staffing Firms Need?
Before you worry about showing proof of insurance to clients, you want to be realistic about the kind of insurance you need overall. Every company is a little different, but you are probably going to need more than one type to cover all of your bases.
As a general rule, you will want general liability insurance. This is standard for most businesses and can cover a lot of ground by itself. Additionally, professional liability insurance helps to protect you from mishaps that are out of your control.
Since you never know what your contractors are capable of, this can be invaluable. After all, if you place someone at a client’s office and he or she accidentally deletes thousands of records, costing the client a significant amount of money, you will ultimately be held responsible.
You may also want to look into workers’ compensation insurance as well as fidelity bond coverage. You may be required to have both of these before being contracted to fill a job, though it will depend on your state’s requirements as well as the kind of IT services you provide.
Attract More Business
More and more businesses are becoming savvy about how to conduct themselves. When a company looks for a prospective contractor, they want proof of insurance. IT staffing is no different.
Whether you are actively working to fill a specific request or you are simply contacting various businesses to forge ongoing relationships, you want to be able to show that doing business with you is in no way a risk.
It will show that you are:
- Prepared to handle problems
- A smart business owner
All of these are attractive qualities and it can be what helps you differentiate yourself from other IT staffing firms that are vying for a particular company’s business. Anything you can do to prove your professionalism can be a big help and allows you to grow your business quickly.
Protect Yourself As A Business Owner
A lot can happen on the jobsite. As mentioned before, when you are providing IT staff on another company’s property, you could have someone who injures themselves, damages the property, or causes the company money because of bad advice that is given.
Having proof of insurance demonstrates that you actually have the means to handle these issues in the event that a company files a claim.
Without the insurance, you could end up paying for everything out of company profits. Depending upon the issue, this could add up to thousands of dollars. If you are a smaller agency, it may be just enough to put you out of business.
This can be easily avoided by being smart and planning ahead. With the right policies in place, you would only have to pay a deductible.
Once you learn of the benefits to having these policies, you will want to have the right insurance all the more. It can be simple to get these policies; it will be something that ultimately pays for itself when you can obtain more business and get yourself out of financial problems in the event that something goes wrong with a client.